Is a business better off giving their employees an incentive to increase sales? Should that incentive be a financial one.

For many years now I’ve been a big supporter of incentivizing employees to motivate them to produce above average results.

A recent trip to two electronic stores got me thinking about this topic.

Store 1 has its salespeople on commission.
Store 2, doesn’t.

What I found was that Store 1’s salespeople were much more knowledgeable on the products they carried.

Where as Store 2’s employees, while having a general understanding of what they were selling, knew little when it came to the finer details.

You see, I’m the kind of customer that pays attention to those finer details. Not to cause trouble or give anyone a hard time, but for 2 reasons:
1. When I’m putting down a big chunk of money on the latest flatscreen LCD or Blu Ray player with surround sound system - I take the time to learn about the products and technologies … to make sure I’m getting something that best suits my needs.
And 2, I live and breathe sales, marketing and customer service, so you might say I have discerning eyes and ears.

But there is a twist to this story. While the salespeople at Store 1 had better product knowledge they came across like a bunch of pushy car salesmen. Their style was more aggressive, and though not overly so, the atmosphere felt more rushed … a bit uncomfortable if you will.

What these two companies need is to blend their approaches. To incentivize their workforce, give them a reason to learn more about the products … and then support them in understanding how to make customers feel comfortable.

Pushy sales don’t work for long-term success. Making your customers feel comfortable, as welcome guests that can confidently show up whenever they please and consistently be greeted with the information they need produces amazing results.

How does your business go about this?

Michael Zipursky